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Reinet van Zyl Aug 2012

Saldanha Works Achieving Energy Savings through a holistic focused management approach A Case Study ICUE Presentation. Reinet van Zyl Aug 2012. Framework. AMSA Background information Summary Background on Saldanha Plant and Process Electricity Price and Cost impact

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Reinet van Zyl Aug 2012

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  1. Saldanha Works Achieving Energy Savings through a holistic focused management approach A Case StudyICUE Presentation Reinet van Zyl Aug 2012

  2. Framework • AMSA Background information • Summary Background on Saldanha Plant and Process • Electricity Price and Cost impact • Saldanha Approach for Sustainable Energy savings • Implementation Time line • Performance Review • Project Detail as examples • 2012 Focus and Target • Conclusions

  3. ArcelorMittal South Africa Thabazimbimines • Overview of Operations • Flat Steel Products • Vanderbijlpark Works – 3.2 Mtpa* • Saldanha Works – 1.2 Mtpa* • Long Steel Products • Newcastle Works – 1.5 Mtpa* • Vereeniging Works – 0.4 Mtpa* • Iron ore supply • 6.25 Mtpa from Sishen • 2.5 Mtpa from Thabazimbi • Coke & Chemicals • Coke - 597 000 tpa* • Tar - 133 000 tpa* Johannesburg Vanderbijlpark Vereeniging Sishen mine Newcastle South Africa Durban Saldanha Cape Town Steel plants in close proximity of key markets * Based on 2006 actual final product sales

  4. Statisticalinformation • Electricity consumption: 160 MW • Daily water consumption: 8 000 kilo liters (world best for an integrated steel plant) • Manpower: 548 permanent employees • Sales output:1,2 million ton HRC/annum COREX Steel shop DR-Plant Mills RHF

  5. Budget 2012 Allocation • Energy related components is 46% of total cost structure. • However, in the steel industry coal and coke it is strictly speaking a raw material. • Coal and Coke is required for the Boudouard chemical reaction. (On this basis the AMSA CO2 tax calculation was reduced to the current R125 mil).

  6. Achieving Energy Savings

  7. Energy Review 2011 - Saldanha

  8. Saldanha Approach Energy Management Sustainability WCM (World Class Manufacturing) Reliability centred focus Management Infrastructure

  9. Roll Out H1 2010 H2 2010 H1 2011 H2 2011 H1 2012 H2 2012 2013-2016 Step 1 : WCM (World class Manufacturing focusing on Autonomous Maintenance (TPM) WCM: Cost Deployment WCM: Cost Deployment WCM : Autonomous Maintenance WCM : Professional Maintenance WCM : Focused Improvement WCM : People Development and other 5 pillars Step 2 : Energy Management Appoint Energy Manager Appoint 3 Team members Energy Strategy Energy Audit Energy Management System ISO 50001 Energy Projects : prioritised implementation and tracking Performance Measure and Control : Improved Metering and Reporting Awareness and training Step 3 : Management Infrastructure

  10. Actions contributing to improved performance • Energy Strategy • An Energy Manager was appointed 1 May 2010. • An energy audit was initiated to identify potential opportunities and expand the list of opportunities already identified. • The team was later increased by a further 3 people focusing on project implementation to fast track potential savings. • 25% of capital allocated to Energy Projects. • WCM (World Class Manufacturing) • The plant volunteered to be a pilot for the roll out of WCM within the AMSA group. • The program is very much focused on equipment reliability and a “clean to inspect” approach • Bronze status reached after 18 months (usual plan 3 years to reach) • IEE Program and Energy Management System (based on ISO 50001) • Pilot plant for the expert training in Energy Management, Electrical Motors and Pumps. • Ensure sustainability of any energy savings made. • Training of personnel in other IEE programs (20 people) • Management Infrastructure (MI) – doing things more efficiently • Implementation of a MI program in Feb 2012. • Optimally utilizing the resources currently available within the plant. • Improve the effectiveness of the organization and address deficiencies in current practices with standards and visual management.

  11. Energy Projects Completed 2011

  12. Energy Projects Completed 2011 (cont.) EnMS helps you reach your targets and sustain performance!

  13. Performance YTD

  14. Performance YTD

  15. Project Detail : LPG Reduction

  16. Energy Contribution by Source 2012 Targets : Electricity 1199 kWh/t or 4.2 GJ/t LPG : 0.66 GJ/t Coal & Coke : 19.4 GJ/t

  17. Energy Focus Areas 2012

  18. Conclusion • Stability and reliability is a prerequisite for optimisation efforts. • Management Commitment and Resource allocation essential. • Energy Management System ensure sustainable energy improvements. • Energy Management System allows a structured approach looking at all aspects (not just technical) • Focus on Energy and Energy opportunities and savings will realise. • Measuring and reporting important for both identifying opportunities and changing behaviour. • The more you investigate potential opportunities the more opportunities are found. • Awareness and education is a critical part for sustained savings.

  19. Questions? • Thank You

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